Dear clients and friends,

On December 27, the decree reforming Article 113 of the Tax Code for Mexico City (“CFCDMX”) regarding the property acquisition tax (“ISAI”) was published in the Official Gazette of Mexico City.

This modification arises in response to various legal and fiscal opinions, as it was considered to violate the principles of tax proportionality and progressivity established in the Mexican tax system.

The reform aims to adjust the ISAI calculation table by introducing updated limits, fixed fees, and progressive factors that seek to correct previously existing disparities. Among the most notable adjustments, income ranges are updated, along with their respective fixed fees and application factors, ensuring that taxpayers with greater economic capacity bear a proportionally higher tax burden and thereby promote a fairer distribution of tax burdens. The table prior to the reform is attached, along with the updated table for further reference as Unique exhibit.

If you are interested in receiving personalized advice, whether to clarify questions about its application, evaluate possible impacts, or analyze legal alternatives to defend your rights, our team of experts is available at the following emails addresses:

Paul Kavanagh: paul@k-g.com.mx
Luis Kanchi: Lkanchi@k-g.com.mx
Miguel Alonso: malonso@k-g.com.mx